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UNP slames govt. over reckless spending, warns of more taxes

The Island

UNP General Secretary MP Tissa Attanayake says people struggling to make ends meet will be burdened with additional taxes in the near future.

The ruling coalition would not have no alternative but to increase existing taxes, introduce new taxes and opt for austerity measures, Attanayake said. “Raising taxes will be necessary to meet the budget deficit caused by irresponsible spending in the post-war era.” he added.

He expressed these views at a press conference called by the UNP at the Opposition Leader’s Office yesterday morning ahead of the presentation of the Appropriation Bill for 2011 in Parliament.

President Mahinda Rajapaksa will present the Budget 2011 on November 22.

Attanayake alleged that the government, which, he said, squandered public funds, couldn’t even pay a higher interest to senior citizens, who had deposited money with the State banks. He said that annual 9.5 per cent interest rate on senior citizens’ fixed deposits had been reduced to 9 per cent with effect from Oct 11, 2010.

Attanayake alleged that the Rajapaksa government had been reckless in launching some mega projects. The UNPer questioned the basis in which the government continued to commit public funds for projects, which, he said, were not economically viable.

Attanayake warned the government over further financial commitments in support of Mihin Air, when even the national carrier SriLankan was finding it difficult to operate.

An irate Attanayake accused the government of turning a blind eye to the rapidly deteriorating economy, though the war had ended in May last year. He urged the government to review its economic policies without further delay.

He alleged that at least seven vehicles belonging to Airport and Aviation Services used by the UPFA during the Jan. 26 presidential and Apr. 8 parliamentary elections hadn’t been returned. The UNP would raise this issue in Parliament.

The Bandaranaike International Airport had been experiencing difficulties due to a drop in international flights operated by the SriLankan and Mihin Air, Attanayake said asserting that there was no point in building new airports when the country’s only existing international airport and two airlines couldn’t attract enough business.

When pointed out that successive UNP governments, too, had abused public property, particularly vehicles during elections, Attanayake acknowledged that the abuse of public property by any political party or an alliance couldn’t be condoned.

Responding to a query on media reports that the UNP had paid Rs. 1 million per week for about three months to a newspaper in the run up to the Jan. 26 presidential election, Attanayake said that it had been a short-term arrangement. He said that the UNP had stepped in with financial assistance on a request made by the publisher of that newspaper. Attanayake said that he hadn’t been personally involved in the transaction though he was aware of the decision to fund the newspaper.

According to MP Attanayake, the publisher needed money to obtain additional newsprint to increase the print order in the run-up to the Jan. 26 poll.

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